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Onyx Medical LLC
Project Number: 20180301
Pilot Type: Expansion
Status: Approved
Parcel ID: 08904400360
County Commission District: 5 | City Council District: 1
Pilot Type: Expansion
Status: Approved
Parcel ID: 08904400360
County Commission District: 5 | City Council District: 1
Summary
This PILOT amendment request is being made to accommodate significant increases in necessary capital expenditures, increases in projected employment and a marginal decrease in the average wage related to the company’s commitment to retain its U.S. headquarters and expand its manufacturing facility in the City of Memphis.Onyx Medical LLC (“Applicant”) was approved for a ten-year Expansion PILOT to enable the company to retain 116 jobs, create 40 net new jobs and invest $13,687,995 at 1800 North Shelby Oaks Drive.
The total project investment includes $307,250 for the purchase of land, $3,380,945 for construction and site improvements and $6,000,000 for equipment and manufacturing machinery. The Applicant is requesting Community Reinvestment Credit for property valued at $3,999,800 ($545,300 for land and $3,454,500 for building).
The Applicant will maintain a total of 156 employees with an average salary of $52,939 including overtime and bonus but excluding benefits.
Parcel 08904400360 (1800 North Shelby Oaks Drive) is 4.55 acres and contains a 52,536 square foot manufacturing facility. Parcel 08904400366 (0 North Shelby Oaks Drive) is 2.05 acres and will enable the Applicant to expand its facility by approximately 27,000 additional square feet. New personal property investments and real property will be included in the PILOT.
Onyx Medical LLC is a contract manufacturer of precision medical devices headquartered in Memphis, Tennessee. Since 1990, Onyx has provided wires, guide pins, drills and screws for the world’s leading orthopedic companies. The company has expanded multiple times in Shelby County over the last 25 years. Through a new ownership structure, the company now has sister operations in Sweden, Denmark and China.
The company is poised to grow once more. This growth necessitates a larger facility with new manufacturing equipment.
Staff projects $7,662,621 in local total tax revenues to be received during the PILOT term of this project and an estimated $1,931,201 benefit to the Applicant.
PILOT Term:
10
Projected New Jobs:
40
Projected Retained Jobs:
116
Total Jobs:
156
Projected Average Payroll of New Jobs:
$52,939
Projected Average Payroll of Retained Jobs:
$55,797
Annual New Direct Payroll:
$2,117,560
Annual Retained Direct Payroll:
$6,472,452
Total Capital Investment:
$13,687,995
Real Property Investment:
$3,688,195
Personal Property Investment:
$6,000,000
Community Reinvestment Credit (CRC):
$3,999,800
Capital Investment not in PILOT:
Not applicable
Projected Tax Revenue:
$7,662,621
Projected Taxes Abated:
$1,931,201
City:
$843,935
(75%)
County:
$1,087,266
(75%)
Benefit/Cost Ratio:
3.97
Projected MWBE/LOSB Spending:
$1,134,916
Incentive Provided:
$1,931,201
Compliance Information
Not applicable
Approved
3/21/2018
Ramp up Period
2
Closing
12/31/2018 (Real)
12/31/2018 (Personal)
12/31/2018 (Personal)
Effective
12/31/2018
Lease Begins
12/31/2018 (Real)
12/31/2018 (Personal)
12/31/2018 (Personal)
Lease Expires
12/31/2028 (Real)
12/31/2029 (Personal)
12/31/2029 (Personal)
Amended
Not applicable
Property Details
Lease Began
12/31/2018 (Real)
12/31/2018 (Personal)
12/31/2018 (Personal)
Lease Expires
12/31/2028 (Real)
12/31/2029 (Personal)
12/31/2029 (Personal)
Onyx Medical LLC
1800 North Shelby Oaks Drive, Memphis, TN 38134- Project Files
-
Closing
- Real Property Leases
-
Personal Property Leases
-
2009_
Dec_ 31st_ Bill_ of_ Sale_ 2009_ PP_ Lease. pdf -
2012_
Dec_ 31st_ PP_ Lease. pdf -
2013_
Dec_ 31st_ Joinder_ of_ PILOT_ Lessor_ to_ 2011_ Commercial_ Security_ Agr. pdf -
2015_
Nov_ 30th_ Joinder_ of_ PILOT_ Lessor_ to_ 2011_ Commerical_ Security_ Agr. pdf -
2018_
Dec_ 31st_ Personal_ Property_ Lease_ Onyx_ Medical. pdf -
2019_
12_ 31_ PP_ Lease_ Onyx. pdf
-
2009_
- Bills of Sale
- Compliance Files